When she says stuff, I listen because she's thought it through, and is usually right. So, when she mentioned that she didn't think the economics of hybrid cars were going to make sense en masse for a long time, it got me thinking.
Being the geek I am, I decided to crunch some numbers to make up my own mind. You'll find it here: http://spreadsheets.google.com/pub?key=p
Turns out, my dear sis was right and wrong. According to my analysis, gas would need to cost north of $10 per gallon to justify the price premium for a hybrid. But, the Fed's did something smart (in my view) and provide a tax credit to buyers of hybrid cars. With the credit factored in, with gas at anything above $2.80, you make out better with a hybrid. And, drivers of hybrids of course derive the all-important psychic benefits.
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